Resellers of FEMA trailers could face criminal prosecution

Anyone found reselling contaminated FEMA trailers for housing
purposes could face criminal charges, the Federal Trade Commission
(FTC) has clarified, responding to questions from House Democrats.

Thousands of trailers — leftovers from the Federal
Emergency Management Agency's response to the 2005 Hurricane Katrina
disaster — were banned as living quarters after the government found
them to contain high levels of formaldehyde, a carcinogen.

ADVERTISEMENT

Still, many trailers have resurfaced amid the
response to the Gulf oil spill. Reports have indicated that sellers are
peddling them as housing units to Gulf cleanup workers despite explicit
directions from the General Services Administration (GSA) that the
units can't be sold as living quarters.

Those caught violating GSA's instructions, the FTC
told Rep. Edward Markey (D-Mass.), would not be subject to fines, but
could face a number of other punitive actions, "including equitable
monetary relief, cease and desist orders, bans and disclosure
remedies."

But given the safety threat — not to mention the GSA's warnings — criminal prosecution might be the best option, the FTC said.

"In
light of GSA's ongoing efforts to address the potential criminal
violations that have occurred in connection with reported resale and
reuse of these trailers, it appears that a criminal action would likely
yield the strongest remedy for consumers," FTC Chairman Jon Leibowitz
wrote to Markey in a July 29 letter, which Markey released Friday.

That verdict drew approval from Markey, the
chairman of the House Special Committee on Energy Independence and
Global Warming, who has pushed GSA officials for answers surrounding
the trailers since The New York Times reported in June that they were
being marketed to oil spill workers. The Massachusetts Democrat is
urging a crackdown on violators.

"Like a zombie from a bad horror film, FEMA’s toxic
trailers just keep coming back to haunt the people of the Gulf coast,"
Markey said Friday in a statement. "We need to ensure that the
appropriate law enforcement agencies are thoroughly and vigilantly
looking into these sales so that no one is unwittingly and needlessly
exposed to the formaldehyde in these trailers again."

Some local lawmakers are weighing in with concerns
as well. Rep. Charlie Melancon (D-La.) warned Friday that "the fumes
from toxic FEMA trailers cause serious respiratory illnesses,
especially for children and seniors, and no one should be living in
them."

"Federal and local law enforcement must actively
investigate any reports of trailers being sold for housing, to protect
Louisiana families from breathing hazardous chemicals while they
sleep," Melancon added.

Built in response to Hurricanes Katrina and Rita,
the contaminated trailers quickly became a liability for the
government, which was spending tens of millions of dollars to store
them. In response, GSA auctioned off tens of thousands of trailers,
with instructions that they couldn't be resold for housing purposes.

Despite the FTC's suggestion that criminal charges
would be the most effective deterrent for potential resellers, the
agency also cautioned that each case would be examined individually.

"Any definitive conclusion would require further
investigation," Leibowitz wrote to Markey. "The remedy pursued would
depend on the facts of the particular case."